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Overseas Zeal for Japanese Stocks May Be Waning

TOKYO—Demand from offshore investors has sent the Nikkei 225 Stock Average higher of late, but the gains don't reflect a fundamental, long-term change in their view on Japan and its economic outlook.

Japan's revival owes in part to the central bank's decision in early December to expand its monetary easing. There has also been new Finance Minister Naoto Kan's preference for a weaker yen; the currency's strength last year hurt...